A top analyst recently predicted Dogecoin price’s likely rally to $5 ahead, with soaring global interest towards the digital assets space. On the other hand, the recent comment from Y Combinator CEO Garry Tan has further fueled speculations. In a recent X post, the CEO said that the meme crypto is likely to go up if Elon Musk’s Department of Government Efficiency (D.O.G.E.) fixes the US inflation.
Dogecoin Eyes Rally As Elon Musk’s D.O.G.E. Targets US Inflation
Dogecoin has witnessed impressive growth over the past few days, with increasing focus of the investors towards the meme coins sector. In addition, Elon Musk’s tie to the leading meme coin has further boosted its appeal among traders.
Now, the Department of Government Efficiency (D.O.G.E.), a department created by Donald Trump and led by Musk, focuses on cutting government spending. D.O.G.E. said that excessive government spending is the root cause of inflation. With Vivek Ramaswamy at his side, Musk’s department seeks to implement robust fiscal policies to curb overspending and reduce inflationary pressures.
Relation Between Dollar & Crypto
Meanwhile, Garry Tan, CEO of Y Combinator, recently highlighted the link between Dogecoin’s potential rally and D.O.G.E.’s success. In a recent X post, Tan explained how government overspending inflates the money supply and devalues the dollar. Besides, he predicted Dogecoin could surge in 2025 if “Elon’s DOGE is successful” in tackling the soaring prices.
Tan shared a video explaining the inflation crisis. The video outlined how inflation arises when governments create excessive cash. With the US money supply growing ten times faster than the economy, inflation has surged, eroding the purchasing power of everyday Americans.
Tan emphasized the need for strict spending caps to halt further monetary dilution, which also resembles the vision of Donald Trump and his associates like the Tesla CEO.
Notably, Elon Musk responded to the post, agreeing with the analysis. He noted that if inflation is controlled, the dollar price of cryptocurrencies like Dogecoin may decrease. However, he also highlighted that the value of crypto remains tied to its scarcity and utility rather than dollar inflation.
DOGE Rally To $5 Imminent?
The crypto community has taken note of Musk’s bold move to address inflation. Besides, analysts speculate that the Dogecoin price could witness a strong rally, driven by its cultural appeal and increasing adoption as a payment method.
On the other hand, Elon Musk’s influence on Dogecoin is no secret, and his association with D.O.G.E. strengthens investor confidence. Recently, speculations have soared over a potential DOGE integration to X payments alongside other cryptocurrencies.
In addition, crypto enthusiasts believe Dogecoin could emerge as a reliable store of value if Musk’s D.O.G.E. could resolve the US inflation woes. Amid this, a top analyst predicts a potential Dogecoin rally to $5, which has sparked market optimism.
Meanwhile, in a recent X post, analyst CryptoELlTES said that a major move for the leading dog-themed meme coin is “just getting started.” In addition, he has set three targets for DOGE at $0.75, $1.5, and $5. Besides, he also said, “Even higher targets are on the horizon!”
Source: CryptoELlTES, X
Notably, DOGE price today was up 1% to $0.3868, while its trading volume jumped 26% to $3 billion. Notably, the crypto has touched a high and low of $0.3978 and $0.3826, respectively. Besides, the recent DOGE whale transactions also indicate a potential rally of the meme coin.
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